9/27/7Residents Voice “Following the Money” 9/27/2007 Conrad Grundke The Continuing Saga:

9/27/7Residents Voice Purpose of Residents Voice! Provide INFORMATION that residents do not receive from: –PCM –GRF –Housing Mutual Directors –Board Meetings –Committee Meetings –OC Register & LA Times –The Globe –Channel 6

9/27/7Residents Voice Who Has Helped Us? Globe Reporter: –Cheryl Walker OC Register Reporter: –Teri Sforza LA Times Reporter: –Tony Barboza Channel 7 Eyewitness News –Eileen Ferrere CotoBuzz Journal Residents Voice Website

9/27/7Residents Voice Distribution of Info ! Informational Success –Residents who received Residents Voice Handouts. Handouts at Post Office Handouts at Resident’s Voice Meetings Neighbor to Neighbor Door to Door –Visitors to Residents Voice Website viewing current information and corporate documentation.

9/27/7Residents Voice Our Limitations ! The Majority of Residents were still unaware of the: –Credit Card Charges –Expense Reimbursement Charges –Bonus/Incentive Plan

9/27/7Residents Voice How to Reach ALL Residents ! Phase One: –Paid Ad in Local Section of OC Register over a 3 day period, Sept , Phase Two: –Upcoming Phase Three: –Yet to come!

9/27/7Residents Voice Results of Ad ! Over 300 hundred phone calls from: –Residents expressing Support. –Readers suggesting other areas to review. –Other HOA’s with similar problems. –Other PCM Managed HOA’s wanting more information to help with their problems. –Callers from New York, New Jersey, Florida, Sacramento, Palm Springs, Cypress, Diamond Bar, Fountain Valley, Huntington Beach, Mission Viejo, Laguna Niguel, Seal Beach, Whittier, Placentia, Coto de Caza, Costa del Sol, La Palma, Laguna Beach, Mission Viejo, Palmea, Aliso Viejo, …., etc., etc.

9/27/7Residents Voice What Does Residents Voice Want ? Housing Mutuals hire an independent outside contract attorney. “Detailed” Audit (tell us what we don’t know). Renegotiated Management Agreement. –Incorporate stringent expense restrictions. –Eliminate Bonus/Incentive Plan. Removal & Replacement of the General Manager.

9/27/7Residents Voice Why Do We Need It ! Continually Rising Assessments. Lack of TRUST in PCM. –We reviewed only 3 areas of Finances and all 3 had questions on ethics and/or legality. Credit Cards. Expense Reimbursement Charges. Bonus/Incentive Plan.

9/27/7Residents Voice Why Do We Need It (cont)! Lack of openness –Credit Cards – “Emergency Use Only” –Expense Reimbursement Charges –”travel, meals, entertainment, gifts, etc.” –Bonus/Incentive Plan Absent from 2001 Management Agreement. Questionable Bonus limits in 2007 MA. –United and GRF have no set limits. –Third has $120,000 limit. –Costs are kept HIDDEN from Board and Residents.

9/27/7Residents Voice How to Hide Costs ? Gatehouse #1 (visible) –Account # Cable TV (visible) –Account # Allocated to GRF Departments (visible) –Account # F.I.C.A. – Incentive Accrual (questionable) –Account # Bonus (hidden) –No Account # with this Description

9/27/7Residents Voice Residents Basis for Mistrust ! For years, PCM never acknowledged the Staff use of Credit Cards. Some GRF Directors say they were aware of the cards, but, since they kept silent, they are complicit. For Years, PCM has never acknowledged the Bonus/Incentive Plan that they implemented with our money, and without our knowledge, over at least the past 7 years.

9/27/7Residents Voice And Now, “Back on the Trail...” GRF & PCM were …. “Caught with their Pants Down !” GRF & PCM Remembering George’s Quote ! R-Voice

9/27/7Residents Voice THE END